Tuesday in the charts.
Weekly mortgage applications fell 0.6% while purchase application were down 2.1%.
September UK CPI was up 0.4% versus estimates of up 0.5%; core CPI was up 0.6%, in line.
To whom does the US Government owe money?
OPEC on the brink of crisis.
Here is a fairly balanced analysis of the economic impact of either a Trump or Biden win.
What is the purpose of the Fed?---------ab—soo--lutely nothin’. Huh.
More on Sweden’s success in combating the virus.
The continuing battle in technology with China.
Bottom line. Just because you are too young to remember a crash doesn’t mean that it won’t happen.
I have been in this business since 1968. So, I have seen a wide variety of crashes: the long drawn out crash (1970’s), the one day crashes (1987), the gut wrenching 60% plus crashes (2008) along with your everyday variety of 10-20% selloffs. As the above article points out, to assume none of these will happen again is fatally naïve. Especially at a time when equity valuations are stretched to the upside and the economic backdrop is worrisome at the least.
So, what is an investor to do. As a contrary opinionist, my solution is to always go to the stocks that are in the tank. Of course, they are there for a reason; but many have been beaten down more than they should. In addition, many also pay handsome dividends that can provide attractive income during periods of Market malaise. Among my holdings, I would point out (all ratings are from Value Line): ATT (7.7% yield, A++ rated), Altria (8.5% yield, B++ rated), AbbVie (5.9% yield, A rated), BEN (4.8% yield, A++ rated), Bank of Nova Scotia (6.4% yield, B++ rated), MSM (4.4% yield, A rated), XLE (energy sector ETF 7.2% yield).
Here is more (conventional) advice on dealing with today’s richly valued Market:
What high valuations mean for your retirement plan.
Where to find yield today.
Here is a thought for those that do not want to assume the risk of holding individual stocks and would prefer an ETF/mutual fund.
News on Stocks in Our Portfolios
MSC Industrial Direct declares $0.75/shar quarterly dividend, in line with previous.
Canadian National Railway : Q3 Non-GAAP EPS of C$1.38 misses by C$0.08; GAAP EPS of C$1.38 misses by C$0.06.
Canadian National Railway declares CAD 0.575/share quarterly dividend, in line with previous.
What I am reading today
A great must read article on the current political scene from a liberal author.
Yeah, this is going to help America be more competitive.
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